SOLE PROPRIETOR

A sole proprietorship, by definition, is a business owned by a single person. This doesn't mean
only a single person has to operate the business. It does, however, mean the owner of the
business, known as the sole proprietor, is responsible for every aspect of the business in
question. While being a sole proprietor does come with numerous challenges, the rewards of
owning your own company can be personally and financially satisfying.

Sole Proprietor Responsibility

1. Set up and monitoring the OP Star Business Operation

2. Managing the day to day operations and transactions
3. Monitoring and overseeing all the department and staff from HR, Accounting, Sales, and
Operation.
4. Monitoring and representing the company for all the compliances from government
regulatory board such as Bureau of Internal Revenue, Department of Labor etc.
5. Review and oversee the financial status of the company
6. Review and understood thoroughly the business policies and implementation

Operation Manager Job Description

To monitor and oversee that all department are properly in function, doing their task according
to their responsibility and deliverables.

Operation Manager Job Responsibility

A. Assists and Monitor HR Department:

1. Is key part of a management team and oversees high-level HR duties, such as attracting
talent and setting training standards and hiring procedures.
2. Analyze and improve organizational processes, and work to improve quality, productivity
and efficiency
3. In charge in providing leadership for the operation which involves making important
policy, strategic decision, and as well as development of implementation of operational
policies and procedures
4. Assist HR with recruiting when necessary.
5. Help promote the company culture and encourages the employee’s morale and
performance.
6. Ensure the the Employee is paid on time
7. Develop, implement and review operational policies and procedures.

B. Assist and Monitor Accounting Department

1. Monitor and ensure that the company is complied to all Government Regulatory Board
such as Bureau of Internal Revenue for tax purposes, Department of Labor for and
Employment, Social Security System, and Home Development Mutual Fund for employer
 and employees requirement, Local Government/City hall for other local business
licenses and taxes.
2. Monitor and ensure that the Companys fund was properly use for business purposes
3. Monitor and ensure that the department perform according to their deliverables and
output which is to provide financial report.
4. Ensure that all obligation are properly paid and not overpaid.
5. Ensure all legal and regulatory documents are filed and monitor compliance with laws
and regulations.

C. Assists and Monitor Operation Department

1. Provide inspired leadership for the organization.
2. Make important policy, planning, and strategy decisions.
3. Help promote a company culture that encourages top performance and high morale.
4. Work with senior stakeholders.
5. Work with the board of directors to determine values and mission, and plan for short
and long-term goals.
6. Build alliances and partnerships with other organizations.
7. Support worker communication with the management team.
8. Set up the local service team and local warehouse

D. Provide Report to the Management

1. Delivers Management Report for the company’s performance
2. Identify and address problems and opportunities for the company.
3. Oversee budgeting, reporting, planning, and auditing.
4. Assist and Provide solutions for the company’s challenges

Benefits of a Sole Proprietorship

1. Easier to set up and register

2. Requires minimal amount of capital
3. Lower cost in registering for government permits and licenses
4. Minimal regulations and monitoring requirements
5. Can register and run business in their own

Disadvantage and Risk of Sole Proprietor

1. Risk and liability is shouldered by the employer alone.

2. Settlement of liability can go including the personal assets of the business owner
3. The loss is suffered by the business owner alone
4. Managing and operating the business by the business owner on their own can
sometimes leads to exhaustion
5. In case of cash flow challenges such as unpaid obligation/liabilities, the shareholders
such as creditors, or government agencies such as Bureau of Internal Revenue, Social
Security System, Local Government, Department of Labor and Employment, can run
 after the business owner personal assets to offset or pay the remaining unpaid
obligation/liabilities.

Process of registering the business as Sole Proprietor

1. Department of Trade and Industry (DTI)

2. Process licenses to Local Government such as Mayor’s Office for Mayors Permits and
Barangays Office for Barangay Clearance
3. Bureau of Internal Revenue
4. Registering the employee to the following Government Agencies such as Social Security
System, Philippine Health Insurance Corporation and Home Development Mutual Fund

Step by Steps Procedure of Registering the business

1. Register a Business Name at Department of Trade and Industry

A. Come up with three business name, so that you have option if in case the 1 st and the
2nd name already been acquired or use by other business
B.Search in the DTI websites if there’s an existing name similar to your business
C.If in case the name is available, fill up the Business Application Form
D. Submit the complete business form to DTI Office
E.Once submitted, wait for the release of the DTI Certificate

After acquiring the DTI Certificate, proceed now and register the business to Local Government
Unit such as Barangay and Mayor’s Office.

2. Registration with Barangay

A. Go to Barangay where business is located and secure and fill up the application form
B.Submit the completed application form together with DTI Certificate, Two Valid IDs
and Lease Contract
C.Claim the barangay certificate/clearance

3. Registration with Mayor’s Office

A. Go to the Municipal Office where the business is located and secure and fill up the
application form
B.Submit the application form together with the DTI Certificate, Barangay
Certificate/clearance, Two Valid IDs and Lease Contract
C.Claim the Business Permits and Licenses

Once the business already has the DTI and LGU’s, now it’s time to register it to the Bureau of
Internal Revenue (BIR)
 4. Register the Business to BIR

A. Go to the Regional District Office (RDO) where the business is located

B.Fill up the BIR Form 1901 (Application for Registration for Sole Proprietor)
C.Submit the completed registration together with the following DTI Certificate,
Barangay Clearance, Business Permits, Contract of Lease and Two Valid Id’s
D. Pay the Registration Form (BIR Form 0605)
E.Register the books of accounts
F. Register the Official Receipts/Invoices to be issued to customer
G. Claim the Certificate of Registration (BIR Form 2303)

5. Register the Employee to Social Security System, Philippine Health Insurance

Corporation and Home Development Mutual Fund.

Once this are all done, the business now can start and focus the operations.

COMPENSATION FEE
Based on the risk associated representing as the Sole Owner of the company per documents,
the Sole Propritor should have additional compensation fee aside for her Salary as employee.
Propose compensastion fee ________________________